In the high-stakes world of corporate finance, few decisions turn heads quite like a publicly traded company moving $100 million into Bitcoin and Ethereum. That’s exactly what Meitu, a Chinese tech firm best known for its viral selfie-editing apps, did in March 2021, right at the height of the crypto market frenzy.
Was this a visionary strategic move, or was Meitu setting itself up for one of the most disastrous corporate investments in history?
What followed was a story of market crashes, mounting pressure, and a perfectly timed exit that turned what could have been a catastrophe into a massive payday.
A Struggling Tech Company Makes a Bold Pivot
Founded in 2008, Meitu became a household name in China with its beauty and photo-editing software. By 2012, it had surpassed 200 million users, and in 2016, it went public on the Hong Kong Stock Exchange, riding high on its reputation as one of China’s most innovative consumer tech companies.
But behind the scenes, Meitu was facing a growing problem:
Its hardware business was struggling. The company launched a line of selfie-optimized smartphones, but it couldn’t compete with giants like Huawei, Xiaomi, and Apple.
Its software business was popular but not profitable. The company relied heavily on advertising revenue, and its attempt to shift toward subscription-based models had yet to take off.
It had cash but no clear growth strategy. By 2020, Meitu was sitting on hundreds of millions in cash reserves, but it wasn’t generating strong returns.
Instead of making another uninspired expansion attempt, Meitu’s leadership decided to take a completely different route.
In early 2021, with Bitcoin and Ethereum skyrocketing to all-time highs, Meitu saw an opportunity that few other companies dared to take.
It decided to diversify its treasury reserves into cryptocurrency—not just as an investment, but as a strategic move to position itself as a forward-thinking tech company.
“We believe that blockchain technology is the future. Our engagement in cryptocurrencies is a first step in this direction.” (Cai Wensheng, 2021)
The Big Move: $100 Million into Bitcoin and Ethereum
On March 5, 2021, Meitu made a historic announcement:
The company had invested $40 million into cryptocurrency:
15,000 ETH ($22.1 million)
379 BTC ($17.9 million)
At the time, Bitcoin was trading at around $48,000, and Ethereum was around $1,500.
By April 2021, Meitu had doubled down, purchasing:
386 BTC ($21.6 million)
16,000 ETH ($28.4 million)
This brought their total cryptocurrency holdings to $100 million, consisting of:
940 BTC (~$39.5 million)
31,000 ETH (~$60.5 million)
The Crypto Crash: A $50 Million Nightmare
By mid-2022, the cryptocurrency market had collapsed.
Bitcoin, which had hit $69,000 in November 2021, dropped below $20,000.
Ethereum, which peaked at $4,800, fell below $1,000.
Meitu’s holdings, once valued at $100 million, were now worth less than half that amount. On paper, the company was sitting on over $50 million in unrealized losses.
“A company like Meitu should focus on its core business. Speculating on highly volatile assets like Bitcoin could offer more risks than opportunities.” (Kevin Wong, Analyst, Hong Kong Financial Times)
Analysts criticized the decision, calling it reckless.
Shareholders began questioning the board’s judgment.
Some investors pressured Meitu to sell before things got worse.
Yet, Meitu didn’t sell. Meitu’s leadership held firm, believing that crypto would eventually recover.
2024: The Well-Timed Exit
By late 2024, Bitcoin was on a historic rally. The cryptocurrency had climbed back to nearly $100,000 and Ethereum was recovering.
Meitu decided that now was the time to cash out.
Before Bitcoin could cross the six-figure threshold, Meitu liquidated its entire crypto position, selling:
31,000 ETH
940 BTC
The total proceeds? $180 million. The net profit? $79.63 million.
This move instantly transformed what could have been a financial disaster into one of the most profitable Bitcoin corporate investments ever made.
What Can Businesses Learn from Meitu’s Corporate Bitcoin Strategy?
Meitu’s story is a masterclass in high-risk, high-reward corporate investing.
What they did right:
They didn’t panic-sell during the crash.
They timed their exit almost perfectly.
They had enough liquidity to absorb volatility.
What could have gone wrong:
If they had sold in 2022, they would have locked in massive losses.
Their initial buy-in was during peak hype, making it a risky move from the start.
Final Verdict: Was Meitu Brilliant or Just Lucky?
Looking at the final numbers, Meitu’s Bitcoin move was a massive success.
But it could have easily gone the other way.
Had they mishandled the investment, panic-sold, or exited at the wrong time, this could have been one of the biggest corporate Bitcoin disasters ever.
Instead, by staying patient, selling at the right moment, Meitu transformed a high-stakes risk into a massive financial win.
The lesson?
A Bitcoin strategy is only as good as its execution.